Maven I&g 4 Regulatory News (MAV4)

8 Feb 2006 16:46

Aberdeen Grwth Opp VCT2 PLC08 February 2006 Aberdeen Growth Opportunities VCT 2 PLC Preliminary Announcement The Directors announce the unaudited preliminary results, subject to finalaudit, for the 70 week period ended 31 December 2005. Net Asset Value The Net Asset Value per share at 31 December 2005 was 97.4p compared with 95pimmediately after launch. The increase reflects the uplift achieved in the AIMportfolio and in one of the unlisted holdings. The increase of 2.5% compares tothe changes in stock market indices generally and, in particular, the FTSESmallCap Index, which rose by 16.0%, and the FTSE AIM Index, which fell by 3.3%for the period between April 2005, when the majority of the shares were issued,and 31 December 2005. This return ignores the benefit of the income taxrecovered by investors on the amount invested. The performance of the portfolio of investments is governed to a large extent bythe investment in instruments designed to protect the capital while providing ameasure of income, where typically the value of such instruments does not followgeneral stock market indices. In addition, the valuation of investments inunlisted companies is generally held at cost for an initial period of up to 12months. Investment Strategy The prime objective in the short term is to achieve the 70% investment inqualifying holdings that is required to achieve venture capital trust status byDecember 2007. I am pleased to report excellent progress with this objectivehaving achieved a qualifying level in excess of 40% by the reporting period end.The directors are confident that this, and all other criteria required forconfirmation of VCT status, will be achieved. Pursuit of the qualifying target is not being achieved at the expense of thequality of the investments being made and the objective remains to build a welldiversified portfolio of unlisted and AIM investments which offer excellentgrowth prospects and therefore the opportunity for capital gains in the mediumand longer term. The Board has recognised the success that the Manager has achieved withinvestments in the AIM Market and has increased the amount which is availablefor investment in this market to 30% of the Fund. Whilst it is the Board'sintention that the proportion of the Company's assets invested in AIM sharesshould not exceed 30% in the long-term, the directors wish the Manager to havethe flexibility to invest up to 40% in AIM-quoted companies when appropriate. Aresolution will therefore be proposed at the Annual General Meeting specificallyauthorising an increase in the maximum investment in AIM to 40% of the fund. Valuation process The unlisted companies in which Aberdeen Growth Opportunities VCT 2 has investedare valued in accordance with the International Private Equity and VentureCapital Guidelines issued jointly by the British Venture Capital Association andothers. Investments are valued at fair value, except where that cannot bereasonably determined in which case they will be carried at their previousvaluation. The programme to converge UK Generally Accepted Accounting Principles withInternational Financial Reporting Standards applies to accounting years startingon or after 1 January 2005 and these new regulations require that listedholdings, including AIM stocks, are valued at their bid price where previouslythey would have been valued at their closing mid-market price in line withindustry practice. Where trading restrictions apply, an appropriate level ofdiscount will be applied. The Board cannot adopt these standards early but has deemed it prudent to valuethe AIM and listed securities at bid prices. Dividends The Board does not intend to declare a dividend for the period ended 31 December2005. Dividends will be paid tax-free to shareholders but the timing of capitaldividends, which will depend on the achievement of realisations, cannot bereliably predicted. Investment Activity The Company has raised a total of £7.4 million from shareholders after expensesand allotments were made in February, April and May 2005. The first investmentswere made immediately following the first allotment and a total of elevenprivate equity and sixteen AIM investments have been made at a total cost of£4.3 million during the reporting period. The balance of funds raised has beeninvested in a range of bonds, unit trusts and cash to await investment inqualifying companies as required by VCT legislation. The following investments have been made since publication of the interimreport: Bond Aviation Solutions (November 2005) - £250,000: Bond provides commercialpilot training services from its Gatwick base. (www.flyastraeus.com) Chiltern UK (November 2005) - £225,000: Chiltern negotiates and managesstandstill agreements and repayment plans for individuals who cannot currentlymeet their debt obligations. (www.chiltern-debt-management.com) Elam T (August 2005) - £167,000: Elam T is a developer of flat panel displaytechnologies. Essential Viewing Systems (August 2005) - £150,000: Essential Viewing Systems isa developer of an advanced delivery technology for video over mobile telephones,the internet and conventional mediums such as television.(www.essential-viewing.com) Fieldstreet (Investments) (October 2005) - £250,000: Fieldstreet acquired CoxInsurance in a public to private deal. Cox is a mid-sized insurance businessfocussed on predominately niche risk areas within motor insurance.(www.cox.co.uk) Litcomp (October 2005) - £100,000: Litcomp is a national supplier of medicalreports in support of legal actions. Litcomp shares are traded on OFEX.(www.litcomp-plc.com) Styles & Wood Holdings (December 2005) - £200,000: Styles & Wood is the leadingindependent provider of store fit-out and refurbishment programmes to the UKretail sector. (www.stylesandwood.co.uk) Vibration Technology (September 2005) - £150,000: Vibration Technology wasformed in 1996 to develop a lightweight, cable-free, seismic acquisition systemfor use in land seismic surveys. (www.vibtech.co.uk) Amazing Holdings * (December 2005) - £150,000: Amazing is a leisure and hoteldeveloper. (www.amazing.co.im) AT Communications * (November 2005) - £140,000: AT Communications is anintegrator of communications systems to SMEs and small corporates, providingservice, installation and maintenance for voice, data, mobile and convergednetworks. (www.atcommunications.co.uk) Avanti ScreenMedia * (November 2005) - £100,000: Avanti is a provider of screensand media advertising content to retailers, pubs, clubs and leisure facilities.(www.avanti-screenmedia.com) Datong Electronics * (October 2005) - £164,000: Datong produces devices thatenable government intelligence and defence agencies to covertly track vehiclesand mobile phones. (www.datong.co.uk) Imprint * (September 2005) - £151,000: Imprint is a provider of a resultsorientated search, selection and value added human capital management servicewithin the critical hire, middle and senior management recruitment markets.(www.imprintplc.com) NeutraHealth * (August 2005) - £150,000: NeutraHealth has acquired BioCare aleading provider of vitamins, mineral supplements, probiotics and other foodsupplements to health practitioners and specialist retailers.(www.biocare.co.uk) * Quoted on AIM Aberdeen Growth Opportunities VCT 2 has co-invested with other funds managed bythe Private Equity Division of Aberdeen Asset Managers (AAMPE) and is expectedto continue to do so. The advantage of this arrangement is that, together, thefunds are able to underwrite a wider range and size of transaction than would bethe case on a stand-alone basis. Portfolio Developments In the Company's Prospectus it was anticipated that the portfolio of investmentswould consist of approximately 50% in private equity investments in relativelymature companies, 25% in earlier stage companies and 25% in AIM quotedinvestments. These proportions will vary from time to time and, at present,there is a larger number of AIM transactions becoming available to the Companyand therefore there has been a higher proportion of investments in thiscategory. The AIM portfolio has been actively traded and during the reportingperiod two AIM investments were realised completely and a further three partialrealisations were achieved resulting in an overall gain of £25,000 over cost. Atthe period end, the remaining AIM portfolio had achieved an uplift over cost of£146,000 (7.7%). Outlook The Company is building a diversified portfolio of good quality assets whichyour Board believes will deliver sustained long term performance in due course.The investment rate is ahead of plan and deal flow across the network of theManager's offices is growing, which should ensure a continuing flow ofopportunities in which the Company can invest. The Manager and the Board areconfident that the investment target will be achieved by 31 December 2007, whichwill confirm the Company's status as a Venture Capital Trust. ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC UNAUDITED STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT*) For the period from 26 August 2004 to 31 December 2005 70 weeks ended 31 December 2005 Revenue Capital Total £'000 £'000 £'000Gains on investments - 219 219Income from investments 211 - 211Other income 38 - 38Investment management fees (13) (52) (65)Other expenses (213) - (213) _________ _________ _________Net return on ordinary activities 23 167 190before taxation Tax on ordinary activities (3) 3 - _________ _________ _________Return attributable to equity shareholders 20 170 190 Ordinary dividends on equity shares - - - _________ _________ _________Transfer to reserves 20 170 190 _________ _________ _________Return per Ordinary share (pence) 0.4 3.9 4.3 _________ _________ _________ * The total column of this statement is the profit and loss account of thecompany. ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC UNAUDITED BALANCE SHEET As at 31 December 2005 As at 31 December 2005 £'000Fixed assetsInvestments 7,269 Current assetsDebtors 62Cash and overnight deposits 401 _________ 463Creditors: amounts falling due within one year (98) _________Net current assets 365 _________Total net assets 7,634 _________ Capital and reservesCalled up share capital 784Share premium 6,660Capital reserve - realised (21)Capital reserve - unrealised 191Revenue reserve 20 _________Equity shareholders' interest 7,634 _________Net asset value per ordinary share (pence) 97.4 _________ ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC UNAUDITED CASH FLOW STATEMENT For the period from 26 August 2004 to 31 December 2005 70 weeks ended 31 December 2005 £'000 £'000Operating activitiesInvestment income received 174Deposit interest received 37Investment management fees paid (61)Secretarial fees paid (37)Cash paid to and on behalf of Directors (48)Other cash payments (44) _________ _________Net cash inflow from operating activities 21 TaxationCorporation tax - Financial investmentPurchase of investments (10,396)Sale of investments 3,332 _________ _________Net cash outflow from financial investment (7,064) Equity dividends paid - Net cash outflow before financing (7,043) FinancingIssue of redeemable preference shares 500Redemption of redeemable preference shares (500)Issue of ordinary shares 7,836Expense of share issue (392) _________ _________Net cash inflow from financing 7,444 _________Increase in cash 401 _________ ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC SUMMARY OF INVESTMENT CHANGES For the period ended 31 December 2005 Net proceeds Net investment Appreciation Valuation of share issue * (disinvestment) (depreciation) 31 December 2005 £'000 % £'000 £'000 £'000 %Unlisted investmentsEquities 638 30 668 8.7Preference 67 - 67 0.9Loan stocks 1,363 - 1,363 17.9 ______ ______ _________ _________ ______ ______ - - 2,068 30 2,098 27.5AIM investmentsEquities 1,862 171 2,033 26.6 Listed investmentsFixed income 2,114 4 2,118 27.7Unit Trusts 1,006 14 1,020 13.4 ______ ______ _________ _________ ______ ______Total investments - - 7,050 219 7,269 95.2 Other net assets 7,444 100.0 (7,079) - 365 4.8 ______ ______ _________ _________ ______ ______Total Assets 7,444 100.0 (29) 219 7,634 100.0 ______ ______ _________ _________ ______ ______ ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC INVESTMENT PORTFOLIO SUMMARY As at 31 December 2005 % of equity Bookcost Valuation % of % of held by 31/12/2005 31/12/2005 total equity otherInvestment Name £'000 £'000 assets held clients UnlistedBond Aviation Solutions 250 250 3.3% 4.0% 36.0%Chiltern (UK) Limited 225 225 2.9% 4.5% 26.4%Elam-T 2 167 167 2.2% 3.9% 14.7%Essential Viewing Systems 150 150 2.0% 9.5% 39.9%LimitedFieldstreet (Investments) 251 250 3.3% 0.1% 1.3%LimitedKingsley Cards Limited 200 200 2.6% 2.5% 25.0%Litcomp plc 100 100 1.3% 0.0% 0.0%Original Shoe Company 250 250 3.3% 1.3% 32.2%Styles & Wood Holdings 200 200 2.6% 0.8% 45.6%LimitedTravel Class 125 156 2.0% 5.0% 44.9%Vibration Technology Limited 150 150 2.0% 1.6% 9.6% _________ _________ _________ 2,068 2,098 27.5%AIM _________ _________ _________Amazing Holdings PLC 150 158 2.1% 5.0% 1.8%AT Communications Group PLC 140 140 1.8% 0.6% 1.3%Avanti Screenmedia Plc 100 108 1.4% 0.2% 2.1%Axeon 150 155 2.0% 1.6% 14.5%Datong Electronics PLC 163 183 2.4% 0.9% 1.2%Elevation Events Group plc 100 58 0.8% 1.7% 8.9%Imprint PLC 151 142 1.9% 0.1% 0.4%Leisure & Gaming plc 137 208 2.7% 0.3% 1.1%Neutrahealth plc 147 175 2.3% 1.1% 2.5%Software Radio Technology PLC 143 227 3.0% 0.7% 3.5%Spectrum Interactive 116 104 1.4% 0.4% 1.5%System C Healthcare plc 150 72 0.9% 0.3% 1.0%Talarius plc 80 123 1.6% 0.2% 1.2%United Clearing plc 159 180 2.3% 1.0% 6.0% _________ _________ _________ 1,886 2,033 26.6%Listed Fixed Income _________ _________ _________InvestmentsBond - Barclays FRN 5.19% 12/ 601 600 7.8%03/12Bond - BNG 4.625% 07/12/06 405 406 5.3%Bond - Cades 5.25% 07/12/06 211 211 2.8%Bond - GE FRN 5.019% 04/05/07 901 901 11.8% _________ _________ _________ 2,118 2,118 27.7%Quoted Unit Trusts _________ _________ _________Aberdeen Int'l Fixed Interest 1,006 1,020 13.4% _________ _________ _________ 1,006 1,020 13.4% _________ _________ _________TOTAL 7,078 7,269 95.2% Notes: Returns per Ordinary share have been calculated using the weighted averagenumber of share in issue during the period of 4,395,996. Net Asset Value perOrdinary share has been calculated using the number of shares in issue at 31December 2005 of 7,835,163. A summary of investment changes for the period under review and an investmentportfolio summary as at 31 December 2005 are attached. The financial information contained within this Preliminary Announcement doesnot constitute the Company's statutory financial statements as defined inSection 240 of the Companies Act 1985. A full copy of the annual report andfinancial statements will be printed and issued to shareholders in February2006, and a copy will be filed with the Registrar of Companies. Copies of this announcement will be available to the public at the office ofAberdeen Asset Managers Limited, and at the registered office of the Company,123 St Vincent St, Glasgow, G2 5EA. By Order of the Board ABERDEEN ASSET MANAGEMENT PLC SECRETARIES 8 February 2006 This information is provided by RNS The company news service from the London Stock Exchange